Insurance Services Revenue Growth of 38% YoY; Reciprocal Policies Written(3) Growth of 38% YoY
SEATTLE--(BUSINESS WIRE)--July 29, 2026--
Porch Group, Inc. ("Porch," "the Company," "we," "our," "us") (NASDAQ: PRCH), a new kind of homeowners insurance company, today reported second quarter results through June 30, 2026, that exceeded our expectations. As a result, the Company raised guidance for the remainder of the year.
CEO Summary
"Q2 was a strong quarter and another clear proof point that the model is working. We exceeded expectations, grew Adjusted EBITDA (Excluding Reciprocal)(1) meaningfully, delivered positive net income attributable to Porch, and are raising guidance(2) across the board. Insurance Services continues to run ahead of schedule, with Reciprocal Written Premium(3) scaling, total Reciprocal Policies Written(3) up 38% year-over-year, and strong earnings flow-through from premium into Adjusted EBITDA (Excluding Reciprocal)(1) . With strong capacity, expanding top-of-funnel activity, and rapid policy growth, we believe Porch is increasingly positioned for sustained profitability, a stronger balance sheet profile, and disciplined premium growth over time," said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder.
Second Quarter 2026 Key Financial Highlights
-- Consolidated revenue was $140.9 million, up 12% YoY. Porch-Owned
Segments Revenue (Excluding Reciprocal)1, representing the revenue
contributions across the Porch-owned businesses, was $131.8 million, up
23% YoY, led by Insurance Services revenue of $92.9 million, up 38% YoY.
-- Net income attributable to Porch was $5.6 million.
-- Adjusted EBITDA (Excluding Reciprocal)1 of $39.1 million grew 150% YoY,
largely driven by $139.8 million of Reciprocal Written Premium ("RWP").
-- Consolidated gross profit was $87.6 million. Porch-Owned Segments Gross
Profit (Excluding Reciprocal)1, representing the gross profit
contributions across the Porch-owned businesses, grew 25% YoY to $111.6
million.
Second Quarter 2026 Operational Highlights
-- Top-of-funnel expansion continued, with Q2 2026 producing agency branch
locations rising 148% from Q2 2025 and quote volumes rising 87% from Q2
2025.
-- Conversion remained well above prior-year levels, helping drive 206%
YoY growth in Q2 2026 RWP3 from new customers, with momentum increasing
exiting the quarter.
-- Reciprocal Policies Written3 grew 38% YoY, an acceleration in the rate
of year-over-year growth relative to Q1 2026 (33% year-over-year).
-- Capacity continued to build: statutory surplus at the Porch Reciprocal
Exchange (the "Reciprocal") ended Q2 2026 at $169.9 million, up 33%
versus Q2 2025 and up 3% versus Q1 2026. Surplus combined with
non-admitted assets ended at $376.5 million, supporting our ability to
scale premiums long into the future while maintaining a healthy
Reciprocal.
______________________________________
(1) Adjusted EBITDA (Excluding Reciprocal), Porch-Owned Segments Revenue
(Excluding Reciprocal), and Porch-Owned Segments Gross Profit
(Excluding Reciprocal) are non-GAAP measures. The measures previously
defined as "Adjusted EBITDA (Loss)," "Porch Shareholder Interest
Revenue," and "Porch Shareholder Interest Gross Profit" have been
renamed to "Adjusted EBITDA (Excluding Reciprocal)," "Porch-Owned
Segments Revenue (Excluding Reciprocal)" and "Porch-Owned Segments
Gross Profit (Excluding Reciprocal)," respectively, to more clearly
reflect their composition. See Non-GAAP Financial Measures section.
(2) Porch provides guidance and targets for future periods based on current
market conditions, assumptions, and expectations as of the date of this
release. Actual results may vary due to a number of factors, and there
is no guarantee that the Company will be able to achieve these
results.
(3) See Key Performance Measures and Operating Metrics section for
definitions of metrics.
The following table presents the Company's unaudited segment operating results for the current quarter.
Unaudited Three Months Ended June 30, 2026
-------------------------------------------------------
(dollar amounts in Insurance Software & Consumer
thousands) Services Data Services Reciprocal
------------- ------------ ------------ ------------
Revenue (a) $92,925 $23,087 $18,130 $ 59,624
Cost of revenue 11,736 5,663 2,849 36,927
------ ---- ------ --- ------ --- -------
Gross Profit 81,189 17,424 15,281 22,697
Gross Margin 87% 75% 84% 38%
Operating expenses:
Selling and
marketing (b) 37,481 8,567 10,150 9,757
Product and
technology 1,364 5,177 689 3,038
General and
administrative (c) 4,278 2,024 8,117 27,316
Interest expense on
intercompany surplus
notes 3,527
Other expense
(income) (d) (5,024) (1) (106) (13,390)
-------
Income (loss) before income
taxes (7,551)
Income tax expense 1,281
-------
Net income (loss) $ (8,832)
=======
Add back:
Depreciation and
amortization (101) (2,554) (6,278)
Stock-based
compensation costs (1,141) (999) (670)
Interest expense -- -- 1
Mark-to-market gains -- -- 26
Other gains and
losses (67) -- 105
------ --- ------ --- ------ ---
Adjusted EBITDA (e) 44,399 5,210 3,247
====== ==== ====== === ====== ===
Adjusted EBITDA
Margin (e) 48% 23% 18%
______________________________________
(a) Includes $2.3 million of intercompany revenue between Insurance
Services, Software & Data, and Consumer Services and $50.6 million
of intercompany revenue between Insurance Services and the
Reciprocal.
(b) Includes $2.3 million of intercompany selling and marketing expense
between Insurance Services, Software & Data, and Consumer Services
and $22.8 million of intercompany selling and marketing expense
between Insurance Services and the Reciprocal.
(c) Includes $23.9 million of intercompany general and administrative
expense between Insurance Services, Software & Data, Consumer
Services, and corporate functions (collectively) and the
Reciprocal.
(d) Reciprocal segment includes a $10.9 million gain on sale of shares
of Porch common stock that is eliminated in consolidation. See
Balance Sheet Information section for more information about this
transaction.
(e) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures.
See Non-GAAP Financial Measures section.
The following table reconciles segment Adjusted EBITDA to Adjusted EBITDA (Excluding Reciprocal).
Three Months Ended
Unaudited June 30, 2026
----------------------
Insurance Services Adjusted EBITDA $ 44,399
Software & Data Adjusted EBITDA 5,210
Consumer Services Adjusted EBITDA 3,247
Corporate general and administrative expenses
(excluding depreciation, amortization,
impairments, stock-based compensation expense,
restructuring & other costs, and acquisition &
other transaction costs) (a) $ (9,579)
Corporate product and technology expenses
(excluding depreciation, amortization, and
stock-based compensation expense) (b) (4,012)
Corporate selling and marketing expenses
(excluding stock-based compensation expense) (c) (410)
Corporate interest income 229
Other corporate income (expense), net --
--------------
Corporate unallocated items $ (13,772)
--------------
Adjusted EBITDA (Excluding Reciprocal) (d) $ 39,084
==============
Net income attributable to Porch $ 5,603
==============
______________________________________
(a) Excludes $0.5 million of depreciation and amortization, $4.6 million of
stock-based compensation costs, and $3.1 million of other items that